Two Memphis property managers can quote you the same 10 percent rate and still leave you with very different returns by year's end. The difference usually hides in Memphis property management fees that sit outside the monthly rate, such as leasing, renewal, and repair charges. Some managers bundle services like thorough tenant screening into their packages, while others bill for them separately.
In this guide, we break down how fees are structured, what your monthly fee typically covers, and which costs usually come on top.
Key Takeaways
- Most Memphis managers charge 8 percent to 12 percent of collected rent for full-service management.
- Your monthly fee pays for managing the property, while placements, renewals, and repair costs are usually billed separately.
- Property taxes, insurance, and vacancy losses are ownership costs that no management fee covers.
- A written fee schedule and strong placement guarantees help protect you from surprise charges.
How Memphis Property Management Fees Are Structured
Typical Monthly Management Fees in Memphis
Long-term property managers in Memphis generally charge 8 percent to 12 percent of collected rent. Our full-service package falls within that same range. On a home renting for $1,300 per month, that works out to roughly $104 to $156 per month.
Percentage-Based and Flat-Fee Pricing
Percentage-based fees scale with your rent, tying your manager's pay to your property's performance. Flat fees offer predictable costs but can take a larger share of income on lower-rent homes.
Placement-Only and Full-Service Management
Placement-only service covers marketing, screening, lease prep, and deposit collection to place a qualified tenant. We price this option at one month's rent. Full-service management handles the ongoing work, from rent collection to maintenance and inspections.
What Your Monthly Management Fee Typically Covers
Rent Collection, Accounting, and Owner Reporting
Your monthly fee typically pays for secure online rent collection, payment tracking, and lease enforcement. It also covers monthly statements, income and expense tracking, maintenance invoices, and year-end reports. We process owner disbursements at the end of each month.
Maintenance Coordination and 24/7 Support
Maintenance coordination means your manager takes repair requests, dispatches qualified vendors, and oversees the work. We offer 24/7 maintenance, and most of our crews have worked with us for over 15 years. Keep in mind that coordination and the repairs themselves are separate. Parts and labor are usually billed on their own.
Routine Inspections and Property Condition Reports
Our full-service package includes move-in and move-out inspection reports. It also includes scheduled inspections with 360° photos taken by trained staff. Interior and exterior pest inspections by a licensed pest company are part of the package too. This added feature can help catch problems before they become costly repairs.
Common Property Management Fees That Cost Extra
Tenant Placement and Leasing Fees
A leasing fee, sometimes called a lease-up or placement fee, covers marketing, showings, screening, and lease signing. In Memphis, it typically ranges from 50 percent to 100 percent of one month's rent. Depending on the company, you may pay it at signing, at move-in, or from the first month's rent.
Lease Renewal Fees
Many managers charge a fee when an existing tenant renews. Our full-service renewal fee is 25 percent of one month's rent. That cost is modest compared to a turnover, which brings vacancy, cleaning, marketing, and a new leasing fee.
Repair Costs and Maintenance Markups
Repair labor and materials are owner expenses, separate from the coordination your monthly fee covers. Some companies add a markup to vendor invoices or charge a percentage of the project cost. Before signing, ask how repairs are billed and look for reliable maintenance services with itemized invoices.
Eviction Fees
If eviction becomes necessary, many managers charge a separate fee to handle notices, filings, and court appearances. Depending on the agreement, attorney fees and court costs may be billed separately.
Setup and Administrative Fees
Some companies also charge one-time onboarding fees or small administrative charges. These seem minor but can add up over a year.
Rental Ownership Costs That Fall Outside Your Management Agreement
Insurance, Property Taxes, and Permits
Landlord insurance, property taxes, licenses, and permits are ownership costs that no management fee covers. The Shelby County Assessor of Property completed a countywide reappraisal in 2025. If your property's appraised value went up, your tax bill may have risen too.
That extra cost lowers your net rental income. Yet your management fee stays the same since it is based on rent rather than property value.
Vacancy and Turnover Costs
Every turnover costs you lost rent plus a new leasing fee. Strong tenant retention keeps those costs down, and our 88 percent lease renewal ratio reflects that focus.
How to Evaluate a Memphis Property Manager's Fee Structure
The Hidden Cost of Unusually Low Fees
A very low monthly rate is often offset by extra charges for inspections, marketing, or lease signings. Compare the total yearly cost alongside the headline percentage.
Guarantees That Protect Owners from Extra Costs
Our full-service package includes a placement guarantee. If a resident we place moves out within the first 6 months of the lease, we find a replacement at no additional placement fee. Our Results Guarantee means we market, show, screen, handle paperwork, and complete the move-in inspection before we get paid.
Key Questions to Ask Before Signing
Before you sign a management agreement, ask for:
- A complete fee schedule in writing
- An explanation of how repairs are billed
- The cost of renewals and evictions
- Termination terms and cancellation fees
- A list of services included at each tier
FAQs
1. What is the average property management fee in Memphis?
Most Memphis managers charge 8 percent to 12 percent of collected rent for full-service management. On a $1,300 rental, that comes to roughly $104 to $156 per month.
2. Do property management fees include the cost of repairs?
The monthly fee typically covers coordinating repairs, such as dispatching vendors and overseeing the work. Labor and materials are usually billed separately, so ask whether a manager adds a markup to vendor invoices.
3. How much does it cost to find a tenant in Memphis?
Placement or leasing fees in Memphis typically range from 50 percent to 100 percent of one month's rent. The fee usually covers marketing, showings, tenant screening, and lease signing.
4. Are property taxes included in my management fee?
Property taxes, insurance, and permits are ownership costs that fall outside your management agreement. Because Shelby County completed a reappraisal in 2025, it helps to review your current tax bill when projecting returns.
Knowing the Full Fee Picture Protects Your Memphis Rental Returns
The cheapest manager on paper rarely delivers the lowest cost in practice. Real value comes from a manager whose total cost is clear upfront. The right service also keeps vacancies short, tenants in place, and surprise expenses rare. When every fee is visible before you sign, you can plan with confidence rather than react to each monthly statement.
At Lubin Property Management LLC, we have spent more than 15 years protecting Memphis rental income through transparent pricing and published guarantees. With more than 10,000 tenants placed, we understand what keeps a rental performing year after year.
Compare our management packages today, and let us help you build a clearer path to stronger returns.
